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Google, Microsoft lose mobile ad share as Apple's iAd grows

post #1 of 34
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Apple's new iAd mobile advertising service is poised to take 21 percent of the U.S. mobile advertising market by the end of 2010, giving the company a market share tied with Google and three times larger than Microsoft.

According to estimates from IDC provided to BusinessWeek, Google, Microsoft and Yahoo have "swiftly lost share" since Apple's iAd debuted in July. By the end of the year, IDC expects Apple and Google to each carry a 21 percent share of the market, which would be a decrease for Google's 27 percent share last year.

Microsoft is expected to see its market share drop as well, from 10 percent last year to 7 percent this year. And Yahoo is projected to drop from 12 percent to 9 percent by the end of 2010, while Nokia will see it share drop from 5 percent to 2 percent.

IDC's figures showing Apple's almost instant success in the mobile advertising market are not, however, as great as the ambitious expectations for iAd shared by CEO Steve Jobs earlier this year. In June, Jobs said iAd would take nearly a 50 percent share of mobile ads in the second half of 2010.

Advertisers who spoke with BusinessWeek reiterated their satisfaction with the performance of iAds. A spokesman for Unilever, which debuted an advertisement for Dove in July, said more than 20 percent of users to view an ad check it out a second time.

A spokesman for Google said the search giant was "experiencing fast growth" this year, though the company declined to give its mobile ad sales for the full year. "If we are losing share, this market is growing faster than any one we've ever seen," said Jason Spero, director of mobile for the Americas at Google.

iAds aim to provide richly interactive ad experiences inside developers' apps, providing them a 60 percent cut of the advertising revenue. The hope is the advertisements -- noted by the iAd logo in the corner -- will be more compelling to users, because they don't have to leave their app and launch a browser to view them.

iAd advertisements act more like full-blown applications, complete with features like videos, interactive games, and the ability to find information such as local stores or product availability.

The iAd platform will expand in November to the iPad, when Apple launches iOS 4.2. Support for iAds was first introduced with iOS 4, released for the iPhone and iPod touch this summer.

Apple plans to use iAd as a program to incentivize App Store development, and does not expect to turn a great profit from its new advertising business, made possible due to the purchase of Quattro Wireless for $275 million.
post #2 of 34
Quite shure the number of ads sold by Goofle is much bigger than the iAd sales - so Apple is doomed, as usual.
That is, when you count numbers (not $$), as they usually do with Android
post #3 of 34
I like Apple, but I just wish these pissing contests would stop as the barometer for a company's success. This is like saying a bus driver (referring to the overall pissing contest, not this article in particular) is eventually doomed because he does not have the passenger capacity nor the coverage an airline pilot has.Or that the only to succeed is to make more money than the pilot and drive him out of business.

But I guess lack of sensationalism simply fails to get eyeballs for the advertisers.
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post #4 of 34
Quote:
Originally Posted by 0yvind View Post

Quite shure the number of ads sold by Goofle is much bigger than the iAd sales - so Apple is doomed, as usual.
That is, when you count numbers, not $$, as they usually do with Android

Yes. Too bad Goofle doesn't charge for each copy of Android. A whole lot of numbers x $0.00 still equals $0.00.
post #5 of 34
Has anyone here had any experience with developing iAds? Is it a relatively straightforward process?

I've been impressed with the look of iAd so far.
post #6 of 34
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Originally Posted by sonicsands View Post

an kle ska ter . c o m

Have you got anything real to contribute or a you just going to keep pimping that site?
post #7 of 34
Interesting statistic, but I believe Apple's purpose with iAd is to provide a better user experience, which in turn sells more iPhones.
I don't think their goal is to take over the advertising world.
post #8 of 34
And let’s not forget these ads are written in HTML, CSS and Javascript. It wouldn’t be hard for Apple to expand the iAds bubble to the web pages thus hurting Google, Yahoo, MS and even Adobe with very little knowledge.
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post #9 of 34
Quote:
Originally Posted by Applecation View Post

Interesting statistic, but I believe Apple's purpose with iAd is to provide a better user experience, which in turn sells more iPhones.
I don't think their goal is to take over the advertising world.

I agree and I am not saying this will happen (i.e. Apple take over the advertising world) ... but It would be ironic if they end up doing just that simply because it is a better user experience. That would send a pretty powerful message to advertising agencies and yet again Apple turns yet another industry upside down. It could be argued several of Apple's product lines (iTunes Store for example) were not set up to be a profit center per se but rather a service to make ownership of an Apple product more enjoyable and productive. Yet it proves to be far more than that simply because it provides a better user experience. This is why I'd love to see Apple take on Maps and Search one day both focussed on the user not the making money aspect.
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post #10 of 34
Quote:
Originally Posted by solipsism View Post

And let’s not forget these ads are written in HTML, CSS and Javascript. It wouldn’t be hard for Apple to expand the iAds bubble to the web pages thus hurting Google, Yahoo, MS and even Adobe with very little knowledge.

You read my mind. I was just going to ask that very question ... why is this limited to iOS ... I assume at first as it is touch based but I suspect iOS and OS X will gain many features from each other over time and iAd with mouse and keyboard isn't too much of a stretch I'd have thought.

It's not too late to buy AAPL folks .... I see it didn't dip to profit taking this a.m. I am shocked! China news maybe?
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post #11 of 34
Quote:
Originally Posted by digitalclips View Post

You read my mind. I was just going to ask that very question ... why is this limited to iOS ... I assume at first as it is touch based but I suspect iOS and OS X will gain many features from each other over time and iAd with mouse and keyboard isn't too much of a stretch I'd have thought.

It's not too late to buy AAPL folks .... I see it didn't dip to profit taking this a.m. I am shocked! China news maybe?

I say its like anything Apple does. They start with a controllable set and then build slowly and in a controlled way.

LA Times had an article a few days ago that 75% of iAd buyers are renewing or increase spending.
http://latimesblogs.latimes.com/tech...evelopers.html PS: I didnt mention it, but the HTML5, JS and CSS3 would have likely have to have a fallback for older browsers, which isnt needed in iOS, but that doesnt seem very difficult in the scope of things, especially when you consider the potential profit Apple could make.
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post #12 of 34
Personally, I've still not seen even a single iAd. Odd that.

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post #13 of 34
Quote:
Originally Posted by SpamSandwich View Post

Personally, I've still not seen even a single iAd. Odd that.

Maybe you have but didnt realize it. Maybe thats how slick these ads are.
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post #14 of 34
Quote:
Originally Posted by uguysrnuts View Post

I like Apple, but I just wish these pissing contests would stop as the barometer for a company's success. This is like saying a bus driver (referring to the overall pissing contest, not this article in particular) is eventually doomed because he does not have the passenger capacity nor the coverage an airline pilot has.Or that the only to succeed is to make more money than the pilot and drive him out of business.

But I guess lack of sensationalism simply fails to get eyeballs for the advertisers.

I would think that if Google had not started the phone war that is a good chance Apple would not have entered the Ad market. Of course, I am just guessing. It seems that SJ was happy enough without it and this is a way of getting back at Google.

I think it is sad that Apple and Google could not cooperate long enough to see that Windows was removed as the king of everything PC.
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post #15 of 34
Quote:
Originally Posted by SpamSandwich View Post

Personally, I've still not seen even a single iAd. Odd that.

AP and NY Times apps. Guaranteed you'll see it there especially in the technology section. I've already stumbled unto 6 different iAds (Nissan, Klondike, Uniliver, Target, AT&T, Audible.com, Citi). I never thought I'd like online ads until iAds. It really is an app inside an app.
post #16 of 34
Quote:
Originally Posted by aplnub View Post

I would think that if Google had not started the phone war that is a good chance Apple would not have entered the Ad market. Of course, I am just guessing. It seems that SJ was happy enough without it and this is a way of getting back at Google.

I think it is sad that Apple and Google could not cooperate long enough to see that Windows was removed as the king of everything PC.

First, let's remember that the ONLY reason why Google is in the Android business is to drive ad/search revenue, nothing else. And while they are competing in this arena, they work together in others, so the competition you perceive is only one part of the complex relationships that exist between the two companies. Same with Microsoft. I wouldn't be a bit surprised to see that they all have targeted interests that they are pursuing with each other, depending on market or product set.

WP7 will be driven directly into the Android market because Google followed directly in Microsoft's footsteps in how they engaged the carriers and handset builders, and the majority of the marketshare gained was at Microsoft's expense. Further, both Apple and Google need to license Exchange to do the corporate thing, so trying to simplify these relationships into "the friend of my enemy is my enemy and the enemy of my enemy is my friend" ignores these rather important inter-relationships.
post #17 of 34
Quote:
Originally Posted by SpamSandwich View Post

Personally, I've still not seen even a single iAd. Odd that.

Me neither, but if you had to contend with ads, obnoxious or otherwise, isn't not seeing them the best way to enjoy your iPad/iPhone/iPod Touch internet experience!!!...

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post #18 of 34
My point exactly.

Quote:
Originally Posted by LewysBlackmore View Post

trying to simplify these relationships into "the friend of my enemy is my enemy and the enemy of my enemy is my friend" ignores these rather important inter-relationships.
Originally Posted by Granmastak: Labor unions managed to kill manufacturing a long time ago with their unreasonable demands. Now the people they were trying to protect, are out of a job.
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post #19 of 34
Quote:
Originally Posted by PaulMJohnson View Post

Has anyone here had any experience with developing iAds? Is it a relatively straightforward process?.

No. Because Apple won't let you let. Just like when they started the itunes LP etc, iAds is in house only at this point. When the bugs are deemed out of the system, they will release an SDK for making ads

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post #20 of 34
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Originally Posted by solipsism View Post

Maybe you have but didnt realize it. Maybe thats how slick these ads are.

If the ads are so slick that you saw an iAd but didn't realize it, then what good is to the advertiser who never gets their ad clicked on once, let alone twice!

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post #21 of 34
Quote:
Originally Posted by SpamSandwich View Post

Personally, I've still not seen even a single iAd. Odd that.

Neither have I, but then again I don't get a lot of the free apps which is where they are most likely to be found.

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post #22 of 34
Quote:
Originally Posted by charlituna View Post

No. Because Apple won't let you let. Just like when they started the itunes LP etc, iAds is in house only at this point. When the bugs are deemed out of the system, they will release an SDK for making ads

Actually, as of mid July, any iOS developer can produce iAds. There is the development kit and it is really very cool. I like the way Apple introduces features slowly. When they do release new capabilities it is always very well thought through and complete.

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post #23 of 34
Quote:
Originally Posted by uguysrnuts View Post

I like Apple, but I just wish these pissing contests would stop as the barometer for a company's success. This is like saying a bus driver (referring to the overall pissing contest, not this article in particular) is eventually doomed because he does not have the passenger capacity nor the coverage an airline pilot has.Or that the only to succeed is to make more money than the pilot and drive him out of business.

But I guess lack of sensationalism simply fails to get eyeballs for the advertisers.

Apple aren't sensationalising this, 'analysts' are - Apple can't help what the media say... So not sure why you're criticising Apple on this point?

One thing I like about apple is the silence as regards speculation and new product announcement, figures are announced in a professional way each quarter and Jobs normally makes a couple of headline figure highlights during his keynotes. Products are announced when they're ready to be pre-ordered or very nearly complete. Hardly blanket sensationalism, that's down to the media.
post #24 of 34
The wonders of miscommunication on the Internet-

I wasn't criticizing Apple at all- it's the way "news" are presented in these forums to provoke a click and generate traffic for advertisers.
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post #25 of 34
Quote:
Originally Posted by solipsism View Post

And lets not forget these ads are written in HTML, CSS and Javascript. It wouldnt be hard for Apple to expand the iAds bubble to the web pages thus hurting Google, Yahoo, MS and even Adobe with very little knowledge.

You mean that web pages could have tasteful, subtle ad banners that are targeted to things that interest me? I could opt-in to view the actual ads?


Nah!


I'd have to replace my AdBlocker with an AdSucker or an AdReader!

The AdSucker could traverse the web and screen-scrape all the ads I want to see...

...then display them all on a single ginormous page of bling!


My mind quivers in anticipation...

.
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post #26 of 34
Quote:
Originally Posted by solipsism View Post

I say its like anything Apple does. They start with a controllable set and then build slowly and in a controlled way.

LA Times had an article a few days ago that 75% of iAd buyers are renewing or increase spending.
http://latimesblogs.latimes.com/tech...evelopers.html PS: I didnt mention it, but the HTML5, JS and CSS3 would have likely have to have a fallback for older browsers, which isnt needed in iOS, but that doesnt seem very difficult in the scope of things, especially when you consider the potential profit Apple could make.

The LA Times article is referring to an incestuous use of iAds: app developers create iAds for their apps and those iAds are presented within other apps;

For example, instead of an app like Angry Birds advertising just Toyota, Lever Brothers, etc. -- in addition it could advertise another app from another (maybe competitive) developer.

So, if I am playing Bejeweled, and see a banner for Birds... I click-through and buy the app! The Bejeweled developer gets paid for the iAd activity of Birds (a competitor).

Reminds me of a Paul Harveyism:

"We cannot all stand around in a circle, with our hands in each-other's pockets -- and get rich, thereby."

Then, as now, that puts a smile on my face.... ...lower


For older browsers, the fall-back can be crap ads as we know them today. I suspect the target profile for most of the iAds will have current equipment and browsers.

If not, the crap ads would provide additional incentive to upgrade-- just to be rid of them.

.
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post #27 of 34
Quote:
Originally Posted by solipsism View Post

Maybe you have but didnt realize it. Maybe thats how slick these ads are.

They can be pretty subtle. You need to be running an app that has implemented iAds, and you won't always get an ad. It is a bit of a chicken and egg thing-- there aren't a lot of iAds yet, and there aren't a lot of apps implementing iAds. Also, iAds are not supported on all versions of iOS and iDevices.

I have a free app I am getting ready to submit. I implemented iAds wherever I could. In testing on the device, I would get a dummy iAd or sometimes a real one-- Toyota was the only one I saw.

.
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post #28 of 34
Was the market share Apple is "poised" to take from Android "calculated" before or after Apple dropped all of the restrictions due to the anti-trust investigations?

Because if they were "calculated" beforehand, they might not accurately reflect how Apple is "poised" to be doing at xmas...
post #29 of 34
Quote:
Originally Posted by Superbass View Post

Was the market share Apple is "poised" to take from Android "calculated" before or after Apple dropped all of the restrictions due to the anti-trust investigations?

Because if they were "calculated" beforehand, they might not accurately reflect how Apple is "poised" to be doing at xmas...

I cant figure out what you are getting at. Did you mean to post this in a thread about OS marketshare? Did you mean Google when you wrote Android?
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post #30 of 34
Quote:
Originally Posted by Rot'nApple View Post

If the ads are so slick that you saw an iAd but didn't realize it, then what good is to the advertiser who never gets their ad clicked on once, let alone twice!

A car transport just drove up with 3 Nissans...

.
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post #31 of 34
Quote:
Originally Posted by mstone View Post

Actually, as of mid July, any iOS developer can produce iAds. There is the development kit and it is really very cool. I like the way Apple introduces features slowly. When they do release new capabilities it is always very well thought through and complete.

Is the development kit part of XCode? Would I be right in assuming that anyone who can put together an app will be able to do an iAd?

Once you've created your iAd, how do you get it into Apples system, and do they pick which applications it might appear in, or do you have some level of control over that?

I assume you pay them based on the number of times your ad is clicked?
post #32 of 34
Quote:
Originally Posted by PaulMJohnson View Post

Is the development kit part of XCode? Would I be right in assuming that anyone who can put together an app will be able to do an iAd?

Once you've created your iAd, how do you get it into Apples system, and do they pick which applications it might appear in, or do you have some level of control over that?

I assume you pay them based on the number of times your ad is clicked?

It is not necessary to use the iAd SDK since all of the iAd code is pure webkit although it is much easier to use the SDK which does integrate nicely with Xcode. There is a submission process. That is all I feel comfortable saying. You should become an iOS developer to learn all the details.

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post #33 of 34
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
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post #34 of 34
Wow 21%, and I still have not seen a single iAD. If only more people got to see those ads I bet the numbers would rise even higher. Apple really needs to get its iAD into more apps. All I get currently is adsense.

Edit: Never mind just saw an iAd for CitiBank. I guess I am seeing those. Very nice.
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